Les Stanley established an insurance agency on July 1, 20Y5, and completed the following transactions during July: Opened a business bank account in the name of Stanley Insurance Inc., with a deposit of $65,000 in exchange for common stock. Borrowed $120,000 by issuing a note payable. Received cash from fees earned, $40,000. Paid rent on office and equipment for the month, $5,000. Provided service to customers on account, $ 20,000. Paid automobile expense for the month, $3,500, and miscellaneous expense, $1,000. Paid office salaries, $6,500. Paid interest on the note payable, $500. Purchased land as a future building site, paying cash of $100,000. Paid dividends, $3,000. Instructions Indicate the effect of each transaction and the balances after each transaction, using the integrated financial statement framework
Les Stanley established an insurance agency on July 1, 20Y5, and completed the following transactions during July: Opened a business bank account in the name of Stanley Insurance Inc., with a deposit of $65,000 in exchange for common stock. Borrowed $120,000 by issuing a note payable. Received cash from fees earned, $40,000. Paid rent on office and equipment for the month, $5,000. Provided service to customers on account, $ 20,000. Paid automobile expense for the month, $3,500, and miscellaneous expense, $1,000. Paid office salaries, $6,500. Paid interest on the note payable, $500. Purchased land as a future building site, paying cash of $100,000. Paid dividends, $3,000. Instructions Indicate the effect of each transaction and the balances after each transaction, using the integrated financial statement framework
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 46P
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Les Stanley established an insurance agency on July 1, 20Y5, and completed the following transactions during July:
- Opened a business bank account in the name of Stanley Insurance Inc., with a deposit of $65,000 in exchange for common stock.
- Borrowed $120,000 by issuing a note payable.
- Received cash from fees earned, $40,000.
- Paid rent on office and equipment for the month, $5,000.
- Provided service to customers on account, $ 20,000.
- Paid automobile expense for the month, $3,500, and miscellaneous expense, $1,000.
- Paid office salaries, $6,500.
- Paid interest on the note payable, $500.
- Purchased land as a future building site, paying cash of $100,000.
- Paid dividends, $3,000.
Instructions
Indicate the effect of each transaction and the balances after each transaction, using the integrated financial statement framework
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